Traditionally, online transactions happen through payment gateways that are known for their speed and security. But right now, the situation is entirely different. The recent spike in fraud cases raises questions about the security aspect of traditional payment gateways. Data shows that 80% of organizations have experienced payment fraud in 2023. This is alarming. For more secure solutions, businesses are increasingly turning to crypto payment platforms for enhanced security features that traditional gateways lack in providing. This article discusses the reasons that make a crypto payment solution a better security alternative for transactions.

Security Drawbacks of Traditional Payment Gateways

Although traditional payment methods are convenient, they can experience a lot of attacks due to their security issues. Let’s look at some of them:

Data Breach:

Data breaches are one of the biggest issues that affect businesses. Data reveals that the average cost of data breaches in 2023 was $4.45 million. Traditional payment gateways manage a lot of sensitive customer information, including credit card details, billing addresses, etc. Hackers can exploit weaknesses in a gateway’s security measures to enter its system and steal the data.

Injections:

Injections involve misleading the payment gateway’s system into running harmful code. Hackers can achieve this by injecting code into forms on the merchant’s website or within the gateway to steal data like credit card numbers and customer information.

Man-in-the Middle:

Hackers here position themselves between the customer’s device and the payment gateway to listen to the conversation and steal important information. Once it is stolen, the information can be used to make fraudulent purchases or access the victim’s accounts.

Due to these issues, there’s a noticeable shift towards cryptocurrency payments as it promises enhanced security, efficiency, and reduced transaction costs. Let’s look at how crypto payment gateways are an effective option.

What makes crypto payment gateways different?

Decentralization:

What separates crypto payment solutions from traditional gateways is their decentralized nature. Transactions are recorded on blockchain technology. This offers several advantages. First, it creates a tamper-proof record of all transactions. Any attempt to alter a transaction would be immediately detectable by all participants in the network. Second, the decentralized nature of blockchain makes it resistant to hacking attacks.

Fraud Prevention:

Accepting online payments can be risky, especially with traditional methods that often experience cases of fraud. Data shows that merchants lost $48 billion in online payment fraud in 2023. Crypto payment gateways use encryptions and two-factor authentication protocols, adding an extra layer of security.

Privacy:

One of the biggest issues with traditional payment gateways is that they often demand individuals to disclose their sensitive information such as name, address, etc. while signing up on the platform. Individuals who prefer privacy are often stressed regarding providing details. On the other hand, crypto payment processors demand limited information from users. Certain cryptocurrency payment solutions allow users to register without KYC. This reduces the risk of data exploitation.

Transparency:

Since all the transactions are registered on the blockchain, any member can view it. This transparency makes it difficult for fraudsters to hide their activities. Any suspicious transaction can be easily traced back to its source, making it a risky proposition for criminals.

Potential Concerns Regarding Crypto Payment Platforms

While we discussed the security benefits of cryptocurrency payment platforms, it is important to discuss certain limitations of it.

• Volatility: Cryptocurrency prices can fluctuate, impacting businesses accepting them. Some crypto payment gateways offer instant conversion to fiat currency to mitigate this.

• Regulation: Crypto regulations are evolving, but reputable gateways follow KYC/AML rules to prevent illegal activity and adapt to new regulations. 

Final Remark

Crypto payment gateways are the perfect response to the security concerns of traditional gateways. Since they are built on blockchain technology, they are tamper-proof by nature which minimizes the risks of data breaches and other attacks. While there are certain concerns related to volatility and regulation, crypto gateways are a far better option for online transactions. One can find several benefits by integrating a crypto payment platform like Coinremitter that offers   

Two-factor authentication (2FA), login shield, and a code card to accept crypto payments securely. In addition to that, the gateway allows its users to register without KYC, prioritizing the privacy of its users.